Stocks closed lower Wednesday in a volatile session as the Federal Reserve lowered interest rates in a half-point percentage move. The outsized rate cut was cheered initially by traders, though it did raise concerns the Fed was trying to get ahead of potential economic weakness.
The Dow Jones Industrials index plummeted 103.08 points to 41,503.10. It was up as much as 375.79 points just after the Fed decision.
The S&P 500 floundered 16.32 points to 5,618.26.
The NASDAQ retreated 54.76 points to 17,573.22.
The Fed lowered its overnight lending rate to a range of 4.75%-5% from 5.25%-5.5%, the first rate cut in four years as inflation levels ease from the levels seen two years ago.
Fed Chair Jerome Powell tried to assuage concerns at a post-meeting press conference that the central bank was cutting aggressively because the Fed sees something troubling about the economy. He hinted it was because the upside risks to inflation have come down so much.
Prices for the 10-year Treasury sagged, lifting yields to 3.71% from Tuesday’s 3.65%. Treasury prices and yields move in opposite directions.
Oil prices faded $1.20 to $69.99 U.S. a barrel.
Gold prices recovered $15.10 to $2,577.30.
